FLSmidth's 2Q20 preliminary report sees 29% decline in order intakes

FLSmidth released its preliminary 2Q20 report ahead of the full interim 2Q20 results due to the volatility in order intake and revenue combined with the suspension of guidance caused by COVID-19. Across all regions, the mining industry and especially the cement industry have been negatively affected by the pandemic.

In the 2Q20, organic order intake declined 29 per cent and organic revenue dropped 26 per cent YoY. Order intake totalled DKK3348m (US$526.2m) compared to DKK4954m in 2Q19. Revenues slipped to DKK2846m from DKK5472 in the 2Q19, or down 30 per cent. The negative development in both order intake and revenue was larger in cement than in mining.

In the 1H20 order intake was DKK9874m compared to DKK10,594m in the 1H19, down seven per cent. Revenue amounted to DKK8371 compared to DKK9888 in 1H19, down 15 per cent.

Based on preliminary figures from its business segments, EBITA is expected at DKK131m in the 2Q20 compared to DKK487m in 2Q19, down 73 per cent. Net debt declined to DKK2.3bn from DKK2.7bn by the end of March 2020.